Low Bunker Prices Help CSCL Triple Profits

by Ship & Bunker News Team
Thursday April 30, 2015

China Shipping Container Lines Co. Ltd. (CSCL) this week has cited the fall of bunker costs since 2014 as a contributing factor in the company tripling its profit in the first quarter of this year, IHS Maritime 360 reports.

CSCL, the nation's second-largest shipping operator, reported a 306 percent year-over-year net profit to CNY249 million ($40 million) while its operating cost fell 15 percent year-over-year to CNY7.2 billion ($1.16 billion), according to the company's April 28 stock filing.

Lower bunker cost was cited as a reason for helping CSCL return to the black last year, along with the company's optimisation of fleet structure and improvement in its shipping route networks.

CSCL's revenue dropped 9.4 percent year-on-year to CNY7.76 billion ($1.2 billion) during the same period which was reportedly due to the scrapping of old tonnage in 2014.

Additionally, CSCL earned about CNY910.6 million ($146.7 million) in proceeds through the disposal of its non-core business and terminal-operating subsidiary.

Earlier this month Russian bunker supplier Big Port Service DMCC (BPS) was reported to be seeking $1.77 million from CSCL over an unpaid bill for bunkers supplied through now-defunct OW Bunker.